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The UK business owner who wants to be in complete control of his company’s future is the business owner who takes the time to study finance and accounting. You do not need to be a certified accountant to run a business, but you do need to have a good understanding of how finance works and what you can do to reap the benefits of good financial habits. When you pay your company bills on time, you will start to see several positive effects on your business that can make it easier to plan growth projects in the future. The key is to devise a plan that will help you to pay those bills on time without creating more debt in the process.

You create more debt by paying bills with bank borrowing. A bank loan or a bank line of credit come with service fees and interest debt that will add more financial issues to your bottom line. If you are regularly relying on bank lending to pay your company bills on time, then all you are really doing is moving your debt from one negative financial platform to another. The best way to pay your bills is to use your own company cash flow. But past due invoices on your sales ledger can make cash flow inconsistent and unreliable. That is why you need to partner with 1st Commercial Credit and use factoring to solve your problems.

Scheduling Payments Is Easier When You Know When The Cash Is Coming In

Business owners use their sales ledgers to track invoices and schedule company payments. But when those invoices start going 30, 60 or even 90 days past due, then it becomes impossible to accurately schedule payments. The company waits and waits for past due invoices to be satisfied and all the while, the company vendors and employees are waiting for their payments. The vendors want their invoices paid on time, and employees want to feel confident that payroll will always be met in on schedule. When invoices go past due, then the company is forced to make other arrangements for payment.

A company would rather borrow funds from a bank than miss a payroll payment to its staff. The first step towards destroying staff morale is to miss just one payroll payment. The frustrating thing is that the cash is sitting in the sales ledger in the form of past due invoices. When you get involved in a factoring program through 1st Commercial Credit, you will have that cash on or before the invoice due dates. You can schedule payments with confidence and you will be able to make all of your corporate obligations on time and in full.

Factoring Keeps Your Financial Foundation Strong And Consistent

Paying your company bills on time is one critical factor in establishing a strong financial foundation for your organisation. When it comes to collecting funds and distributing funds, every business owner would love to be able to rely on a schedule that is created from invoice due dates and the dates that the company is due to make payments to creditors and the payroll organisation. The invoice due dates represent an accurate accounting of when the funds will be in the company bank account, and the creditor due dates are the precise days when those company debts will be paid. Factoring through 1st Commercial Credit creates that strong financial foundation and the consistent scheduling that business owners long for.

When you are involved in a factoring programme from 1st Commercial Credit; your invoices are approved quickly and you have the funds in your account on or before the invoice due dates. It only takes a few business days to get your application approved and have your account set up for business. Once that happens, invoices can be factored on a regular basis using the invoice due dates as the moments when the cash will hit your company bank account. 1st Commercial Credit will advance you cash based on the face values of your invoices. There is a small fee that is subtracted from each cash advance, but the remaining balance of the invoice is deposited into your company’s accounts. You can schedule payment dates for your company bills with confidence and know that you will always be able to make payroll on time as well.

Paying Company Bills On Time Has Several Advantages

Why is it so important that you pay your company bills on time? For one thing, try to imagine what your employees would say or do if you announced that payroll would be a few days late. Your company morale would plummet and your employee turnover rate would skyrocket. You would then have to worry about the additional costs of recruiting, hiring and training new employees. Your company’s reputation would be damaged as disgruntled employees would certainly take to the Internet to describe their dissatisfaction at having their paycheques held up.

Paying your employees on time keeps them productive and loyal. Paying your vendors on time not only maintains your good credit rating, but it also strengthens your ability to borrow funds for larger projects in the future. When it is time to build that new production facility, the fact that you have been paying your corporate bills on time will have a huge influence over whether or not you are able to get the funding you need. A sustained cash flow that is used to pay your company bills can also help reduce the amount of money you need to borrow for growth projects. It is just one way of reducing your company’s reliance on external funding for expansion and meeting corporate goals.

Use Factoring As Part Of Your Company’s Financial Business Process And Pay Bills On Time

The ability to pay company bills on time all starts with developing a reliable cash flow that can be used to meet financial obligations. For most companies, there is a disconnect between the sales ledgers and the bank accounts. The sales ledgers list out all of the invoices that the company has generated, and that represents the cash flow to take care of company debts. But the bank account consistently indicates that past due invoices are preventing the cash from being available, and that causes a lot of financial issues that reverberate throughout the organization. Factoring eliminates that disconnect and turns the sales ledgers into reliable cash flow monitors that can be used to schedule bill payments and as a source of ongoing funding.

A factoring programme from 1st Commercial Credit can be implemented as part of the way that your company normally does business. Instead of worrying about invoices when they are generated, your company simply submits the invoices for factoring and has the cash deposited directly into your bank account. 1st Commercial Credit will make those cash advances on or before each invoice is due. If the invoice is past due, then payment can be made within 24 hours of invoice approval. The process is extremely simple and it can be an automatic part of your company’s cash flow process. With a reliable business line of credit at your disposal, you can make certain that all of your corporate obligations are met and that your company’s financial future is secure.

Reap The Rewards Of Timely Payments With Invoice Factoring

When you pay your company bills on time, you are avoiding the pitfalls of debt that can hold you back from success. You cannot grow your company when you are constantly scrambling to find the funds you need to pay company obligations. When you have a reliable cash flow, then you can start to plan for the future of your organization. You can start to look at applying your corporate cash towards future growth projects, instead of having to use your money to pay interest and service charges on bank borrowing. With invoice factoring on your side, your company has a future to look forward to and the chance to be debt-free.

There is significant financial strength in being able to pay your corporate bills on time. You will enjoy a better relationship with your creditors and you will pave the way for major expansion projects in the future. Contact 1st Commercial Credit today and find out just how easy it is to use factoring to lay the groundwork for your company’s future success.